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Orion Residential Breaks Into Phoenix With $38M Portfolio Buy

PHOENIX-With the deal now closed, the Seattle-based investment group is ready to ramp up a $6.5-million renovation plan for an 844-unit class B portfolio bought from United Dominion Realty Trust.

By Jennifer D. Duell | Updated on March 07, 2005

PHOENIX-Orion Residential LLC has made its foray into the Valley, dropping $38 million to acquire a three-property, 844-unit multifamily portfolio from Highlands Ranch, CO-based REIT United Dominion Realty Trust Inc.

Two of the class B complexes, Northpark Village and Woodland Park, are located in Phoenix while the third complex, Stonegate Apartments, is in Mesa. Orion Residential acquired the properties through an equity joint venture with GE Real Estate Partners Group. The Washington, DC office of Reilly Mortgage Group Inc. arranged financing for the transaction through Freddie Mac.

Seattle-based Orion Residential’s president and CEO Brian Ward says $6.5 million will be spent on upgrades for the complexes, which were more than 93% leased at sale time. “We think there is a neat opportunity to buy affordable communities in the Valley and make quality of life improvements so we can deliver a super-safe, high-quality level of housing to the affordable end of the market,” he tells GlobeSt.com. “It’s a great niche and that’s our general strategy for these deals.” He says the value-add plan is tied to concession burn-offs and rent hikes.

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